The battle for Dulux

Paints firm AkzoNobel has received a generous offer, and activists are urging a sale. So why is the firm standing firm? Ben Judge reports.

AkzoNobel, the Dutch maker of Dulux paint, is embroiled in a takeover battle with the US paints giant PPG, which makes Leyland and Johnstone's paints in the UK. In early March, PPG approached Akzo with an offer of €83 per share, compared with Akzo's share price of €65 at the time. Akzo's board declined. PPG came back with an improved offer of €90, which was also knocked back. On Monday, PPG returned for a third time, offering€96.75 in cash and shares, saying, "We are extending this one last invitation to you to reconsider your stance and to engage with us."

Akzo's chief executive, Ton Bchner, responded with a proposal to spin out the company's speciality chemicals arm, pay a special dividend of €1bn and increase its regular payout by 50%. However, that hasn't satisfied shareholders, who are putting Akzo's management under pressure to engage with PPG. Activist hedge fund Elliott Management, which owns about 3.5% of the company, called Bchner's strategy "too ambitious, incomplete and an attempt by senior managers to keep their jobs", while PPG's bid is "a bona fide proposal from a credible counterparty". Threadneedle Asset Management agreed, saying that Akzo "has no more room for excuses and must enter into proper discussions with PPG".

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Ben Judge

Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.

Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin. 

As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.